How does the organisational structure influence a work environment for innovation

Abstract

Companies operating in dynamic and rapidly changing markets need to design an organisational structure that fosters innovation. However, there are still remaining gaps in literature regarding the impact of organisational structure on the development of an environment that stimulates creativity and innovation. This paper analyses the influence of different dimensions of organisational structure on the development of a work environment for innovation. A case study with a mixed method approach was conducted in the Brazilian subsidiary of a multinational company recognised worldwide for its innovative capacity. The results contribute to the theory by showing that several structural dimensions – mainly the level of communication, level of formalisation and job codification – affect the work environment for innovation. The study also enriches the comprehension on how managers should design specific structural dimensions to stimulate creativity and innovation.